JPMorgan Hiding Behind Ala. County's Ch. 9: Bond Insurer

Law360, New York (February 24, 2012, 2:46 PM EST) -- Assured Guaranty Municipal Corp. on Thursday told the bankruptcy court overseeing Jefferson County, Ala.'s $4 billion Chapter 9 case that JPMorgan Chase Bank NA is improperly trying to use the proceeding to stall the municipal bond insurer's fraud suit against it in New York.

Assured said JPMorgan, which underwrote billions of dollars in sewer warrants for the county, contends that the automatic stay in the bankruptcy applies to a state court lawsuit over $378 million in insurance coverage simply because the bank has asserted indemnification and...
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